Airline Employee Tax Deductions

Work-related car expenses

The cost of normal trips between home and work is a private expense that you cannot claim an income tax deduction for. Unless these followings apply:

  • Transporting bulky equipment and tools
    • the equipment is needed to us at work
    • transport of the equipment is essential and it is not done as a matter of convenience or personal choice
    • no secure storage area at workplace
  • Travelling between workplaces
    • Directly between 2 separate workplaces – when you have 2 jobs for example
    • from your normal workplace to an alternative workplace while you are still on duty, and back to your normal workplace or directly home .

Transporting luggage to and from the airport is not deductible as it is a private expense.

You can claim for the all expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers. You must keep records for all these expenses.

You can claim actual expenses if you travel in a car that is owned or leased by someone else – such as any petrol, oil and repair costs

The cost of parking, tolls, taxis and public transport – if you are required to travel between 2 separate workplaces, to attend seminars,  meeting and training courses (if you need to stay away overnight, you can also claim for the costs of meals and accommodation)

How to claim your car expenses

Cents per kilometre method

When working out your deduction using the cents per kilometre method, you:

  • can only claim up to the first 5,000 work kilometres you travel
  • do not need receipts or other written evidence but we may ask you how you worked out your estimate of work kilometres, for example, by
    • using a diary of work-related travel
    • basing your costs on a regular pattern of travel.

Logbook method

The logbook method provides a way of working out the percentage of your car use that is for work purposes. You can then claim a deduction for this percentage of each car expense you incur.

When using the logbook method, you must keep all of the following:

  • A logbook. To work out the percentage of your car use that was for work purposes your logbook must cover a period of 12 weeks and is valid for five years.
  • Odometer records. Record your opening and closing odometer readings for each year you use the logbook method.
  • Written evidence for all your car expenses. You can use your odometer records to estimate your fuel and oil costs instead of keeping receipts.

Your logbook must contain the following information:

  • when the logbook period starts and ends
  • the car’s odometer readings at the start and end of the logbook period
  • the total number of kilometres you travelled in the car during the logbook period
  • the number of kilometres you travelled in the car for each work-related journey – if you made two or more journeys in a row on the same day, you can record them as a single journey
  • the percentage of your car use that was for work purposes during the logbook period.

If you work out the percentage you used your car for work purposes using a logbook from an earlier year, you need to keep the logbook for each year you use the logbook method, satisfying the above criteria.

Work-related daily travel expenses you cannot claim

Unless you meet the conditions outlined in Work-related daily travel expenses you can claim, generally the cost of normal trips between home and work is a private expense you cannot claim a deduction for, even if:

  • you work outside normal business hours – for example, shift work or overtime
  • you are on call
  • you do minor tasks such as picking up your airline uniform from the dry-cleaners on the way to work or home
  • you live a long distance from work
  • there is no public transport available, so you use a car.

The expenses you incur to travel between your home and work are still private expenses where:

  • you work partly from your home, and
  • your home is not your place of business.

The costs of meals and incident expenses when you are required to stay away overnight – Overnight travel expenses may include:

  • meals, accommodation and incidental expenses
  • car, air, bus, train, tram, ferry and taxi fares
  • bridge and road tolls
  • car parking
  • car hire fees
  • visa application fees.

Generally, meals, snacks and drinks you buy and consume whilst on the job are considered to be a private expense that you cannot claim as a deduction.

Allowances

A travel allowance is an amount you receive that could reasonably be expected to cover your accommodation, meals and expenses incidental to your work-related travel.

If you receive a bona-fide travel allowance and you do not claim more than the reasonable allowance amount, you do not need to keep receipts or other written evidence. We set the reasonable allowance amounts for domestic and overseas travel expenses in an annual taxation determination that explains:

  • when you do not need evidence of your expenses
  • the way that you can claim your overnight travel expenses.

Allowances include the Overseas Daily Travelling Allowance, Australian Daily Travelling Allowance, and Standard Daily Travelling. These allowances in relation to any of your domestic and overseas travel expenses are fully assessable.

If you have expenditure in excess of the allowance you received from your employer, you can claim the full amount as long as:

  • it is a deductible expense
  • you have recorded the allowance as income at item 2 on your tax return
  • you have written evidence to substantiate the full claim if it exceeds the reasonable allowance amount we set.

If, under your workplace agreement, your travel allowance is folded into your salary and wages, it is not considered to be an allowance. To claim travel expenses against these amounts, they need to be deductible expenses and you must have written evidence to support your claim.

If the travel allowance that has been folded into your salary and wages covers only day travel where you are not required to sleep away from home, you cannot claim a deduction for meal expenses.

Keeping records of your overnight travel expenses

If a travel allowance is not shown on your payment summary and was not more than the reasonable allowance amount, you do not have to show it on your tax return as long as both of the following apply:

  • you have spent the entire allowance on expenses that you can claim as a deduction
  • you are not claiming the deduction on your income tax return.

If you wish to claim meal, accommodation and incidental expenses you incurred while away overnight for work, use the following tables to determine what evidence you need. You can claim a deduction for the full amount of your overnight travel expenses without keeping all your records if:

  • you receive a travel allowance that could reasonably be expected to cover your accommodation, meals or expenses incidental to the travel (a token amount paid as a travel allowance is not accepted as reasonably covering such costs), and
  • your overnight travel expenses were equal to or less than the reasonable allowance amount we set.

You do not have to keep written evidence but we may ask you to explain how you worked out the amount you spent.

The cost of buying, renting, repairing or cleaning your work clothing – Deductible work clothing includes:

  • Compulsory uniforms or corporate wardrobes. This can be a set of clothing or a single item that identifies you as an employee of an organization having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work.
  • A non-compulsory corporate uniform that your employer has registered with AusIndustry – check with your employer if you are not sure. If you wear a non-compulsory uniform, you cannot claim for stockings, hosiery, socks or shoes as these items cannot be registered as part of a non-compulsory uniform.
  • A single item of distinctive clothing such as a jumper, shirt or tie with the employer’s logo if it is compulsory for you to wear it.
  • Protective clothing and footwear to protect you from the risk of illness or injury, or to prevent damage to your ordinary clothes, caused by your work or work environment. Items may include fire resistant and sun-protection clothing, safety coloured vests, rubber boots and steel-capped boots.

For compulsory uniforms, there must be a strictly enforced policy making it compulsory to wear the clothing at work. Items may include shoes, hosiery, stockings, socks and jumpers where they are an essential part of a distinctive compulsory uniform and the colour, style and type are specified in your employer’s policy.

The cost of cleaning and maintaining clothing – provided it falls into one or more of the categories of deductible clothing listed above. This applies whether the clothing is purchased by you or supplied by your employer and includes the cost of washing, drying and ironing your work clothing, such as:

  • laundromat expenses
  • home laundry expenses
  • actual dry cleaning costs.

Keeping records of your clothing, laundry and dry-cleaning expenses

You do not need to keep receipts or other written evidence of your claim if the total amount of your laundry expenses is $150 or less, or your total claim for work-related expenses is $300 or less. However, you must be able to show how you worked out your claim.

If you did washing, drying or ironing yourself, you can use a reasonable basis to calculate the amount, such as $1 per load for work-related clothing, or 50 cents per load if other laundry items were included.

If your claim for laundry expenses is more than $150 and your total claim for work-related expenses is more than $300 (not including car, meal allowance, award transport payment allowance and travel allowance expenses), the records you must keep include:

  • receipts, or other written evidence of your expenses
  • diary entries you make to record
    • your small expenses ($10 or less) totalling no more than $200 that you do not have a receipt for
    • expenses that you cannot get any kind of evidence for regardless of the amount – for example, a diary record of your laundromat costs.

You cannot claim a deduction for the cost of purchasing or cleaning conventional clothing you wear to work that does not fall into one of the categories above, even if your employer tells you to wear it. This includes:

  • clothing you wear for medical reasons, such as support stockings
  • conventional clothing that is damaged at work
  • everyday footwear such as dress, casual or running shoes
  • Conventional hair accessories and earrings.

Cash or bar shortages

You can claim a deduction for the cost of making up cash or bar shortages.

Internet and computer

You can claim the work-related proportion of your internet access or internet expense or the decline in value of your computer, laptop or notebook where you use the internet or computer in the course of carrying out your work-related activities.

Luggage

A deduction is allowable for decline in value (depreciation) on luggage to the extent of the work-related use of the luggage. This includes:

  • travel bags
  • overnight bags
  • suit packs
  • navigation bags
  • suitcases
  • luggage trolleys.

Phone expenses

You can claim a deduction for the cost of work-related phone calls you make, including calls from mobile phones. You can also claim the work-related proportion of your phone rental if you can show you were on call or were regularly required to phone your employer or clients while away from your workplace.

Work-related calls may be identified from an itemised account. If an itemised account is not provided by the phone company, records (such as diary entries) covering a representative four-week period will be accepted as establishing a pattern of your phone use for the entire year. You can also apply this percentage of work use to your phone rental costs, to apportion the amount of rental costs you can claim.

Rehydrating moisturisers and conditioner

For flight attendants, a deduction for rehydrating moisturiser and rehydrating hair conditioner is allowable when used to combat the drying effects on the skin and hair when constantly exposed to harsh working conditions and to meet the employer’s strict grooming requirements. For example, drying conditions brought about by constant exposure to the low humidity of the pressurised airline cabin.

Stationery

You can claim a deduction for the cost of stationery items to the extent that you use them for work, such as:

  • street directories
  • logbooks
  • diaries
  • pens
  • other stationery.

Sunglasses and sunscreens

You can claim a deduction for the cost of sunglasses and sunscreen lotions if the nature of your work requires you to work in the sun for all or part of the day and you use these items to protect yourself from the sun while at work – for example, if you work on the tarmac to assist passengers to board the aircraft. You will have to apportion the expenses if you also use the items for private purposes.

The cost of work-related short training courses, for example first aid, OH&S, RSA updates, food and beverage service, foreign languages (provided this is required as part of your current job).

You can claim for the cost of course-related fees (but not HECS or HELP), books, stationery, internet connection, telephone calls, tools or equipment and travelling to and from the course.

You can also claim any accommodation and meal expenses you have to pay if you are required to stay away overnight for your course.

Licenses and certificates renew cost – medical examination including travel to and from medical practitioner

Medical examinations – for licenses renewal including travel to and from medical practitioner

Annual association membership fees or union fees – Flight Attendants’ Association of Australia (FAAA) membership fees for example

Other work-related expenses you cannot claim

Grooming (cosmetics, skin care, hairdressing)

As a flight attendant, you may be required by your employer to be well groomed and presentable. Even if you are required to wear make-up by the airline, such costs are private in nature and not deductible.

A deduction is not allowable for the cost of items, such as:

  • cosmetics
  • shaving products
  • deodorant
  • general hair products
  • nail polish
  • toiletry bags
  • general skin care products
  • expenditure on hairdressing.

Product knowledge

You cannot claim a deduction for the cost of acquiring product knowledge, for example on cheese, wine and travel as this is not sufficiently related to your income-earning activities.

Timepieces and watches

You cannot claim a deduction for the cost of buying or maintaining timepieces, even if they are required as part of your uniform, as this is a private expense.

Travel insurance

You cannot claim a deduction for travel insurance as this is a private expense.